WESPAC MIDSTREAM SIGNS CONSTRUCTION CONTRACT TO BUILD FIRST LNG BUNKER BARGE IN NORTH AMERICA FOR TOTE
WESPAC MIDSTREAM SIGNS CONSTRUCTION CONTRACT TO BUILD
FIRST LNG BUNKER BARGE IN NORTH AMERICA FOR TOTE
Agreement underlines commitment to provide comprehensive
solution for ship owners to meet ECA compliance
IRVINE, CA, U.S.A.: WesPac Midstream LLC (WesPac), a leading provider of energy infrastructure and liquefied natural gas (LNG) solutions, and its affiliate Clean Marine Energy LLC (CME), the global facilitator of tailored solutions for Emission Control Area (ECA) compliance, announced today a construction contract with Conrad Orange Shipyard, Inc., a division of Conrad Shipyard, LLC, to build the first dedicated LNG bunker barge for the marine market in North America. This barge will be a critical supply chain component in ongoing efforts around the world to reduce the environmental impact of maritime activity through the conversion of ships to LNG.
The first 2,200 cubic meter (cbm) barge is expected to be delivered in early 2016 and planned to initially be deployed in Tacoma, Washington, to service shipowner Totem Ocean Trailer Express’s (Totem Ocean) “Orca class” RO/RO vessels, in addition to other LNG-powered vessels. Subsequently the barge will be relocated to Jacksonville, Florida to serve TOTE’s (parent company to Totem Ocean) newbuild “Marlin class” container vessels and other LNG-powered vessels in the Port of Jacksonville.
The LNG barge will feature one tank equipped with MARK III Flex cargo containment technology, from the French engineering and technology company GTT (Gaztransport & Technigaz)., to be constructed by Conrad Orange Shipyard under GTT license. Bristol Harbor Group, Inc. will be responsible for the vessel’s design, with the American Bureau for Shipping (ABS) acting as the classification society.
This initial bunker barge for TOTE is part of the WesPac/CME plan to provide an integrated LNG solution for engine conversion, infrastructure, supply, and delivery logistics to the shipping industry. As more U.S. Jones Act shipowners and operators seek to meet stringent 0.1 percent sulfur limits within ECAs by converting to LNG as a cleaner bunker fuel, WesPac/CME plans to exercise its options with Conrad to construct additional LNG fueling barges to serve other North American ports.
Pace Ralli, CEO and Co-Founder of CME, commented: “A comprehensive LNG supply and distribution network for the marine market in North America is critical for the shipping industry. Today’s announcement shows that WesPac/CME is taking the necessary steps to complete the LNG supply chain so ship owners can be assured LNG will be available when and where it is needed.”
Peter Keller, EVP of TOTE, stated: “We are pleased to work with our partners WesPac and CME on these groundbreaking LNG projects. This sophisticated new barge, constructed by Conrad and utilizing GTT membrane technology, will serve both our Orca class vessels as they are converted to LNG and the Marlins, the world’s first LNG dual fueled container vessels. TOTE is committed to caring for the environment and the communities we serve and this barge will enable us to supply our ships with LNG, a cleaner alternative fuel.”
About WesPac Midstream
WesPac is a private energy infrastructure company founded in 1998 to develop, build, own and operate midstream assets in North America. WesPac’s primary focus is on infrastructure for the emerging transportation sector for marine vessels, trains and vehicles switching to liquefied natural gas (LNG) from diesel or other oil-based fuels. WesPac provides turnkey solutions that are designed and engineered by WesPac for the specific needs of its customers. Please visit WesPac’s website at http://wespac.com/.
About Clean Marine Energy
CME offers ship owners tailored solutions for emissions compliance, including a proprietary financing mechanism to retrofit vessels with LNG fueling technology without a large upfront capital requirement. CME’s comprehensive offering is built on strategic partnerships between industry leaders that combine technology, engineering expertise, capabilities and track record. CME developed the LNG barge project with the support of its affiliate, Mid Ocean Marine LLC, the technical services of Alternative Marine Technologies LLC (Amtech), and the ship broker services of Shipping & Finance Ltd. Please visit CME’s website at http://www.cleanmarineenergy.com/.
About Highstar / Oaktree Capital
WesPac’s primary investor Highstar Capital, founded in 1998, is an infrastructure investment firm with deep expertise in energy investing and development. In August 2014, the Highstar Capital investment team joined Oaktree Capital Management, L.P., a global investment management firm with more than $93 billion in diversified assets under its management as of September 30, 2014, and considerable experience in the energy industry. Please visit Oaktree’s website at http://www.oaktreecapital.com/.
GTT (Gaztransport & Technigaz) is the world leader in cryogenic membrane containment systems used for the transport and the storage of LNG (Liquefied Natural Gas). For over 50 years, GTT has offered to its customers technologies which allow them to optimize storage space and reduce the construction and operation costs of ships or tanks equipped with these systems. GTT operates in several sectors: LNGCs (Liquefied Natural Gas Carriers) and VLECs (Very Large Ethane Carriers), Multi-gas carriers, FLNGs (Floating Liquefied Natural Gas units), FSRUs (Floating Storage and Regasification units), onshore storage tanks and the use of LNG as a fuel. GTT is listed on Euronext Paris, Compartment A (ISIN FR0011726835 Euronext Paris: GTT) and is included in SBF 120 and MSCI Small Cap indices. Please visit GTT’s website at http://www.gtt.fr/.
About Conrad Shipyard
Conrad Shipyard, LLC specializes in the construction, conversion and repair of a wide variety of marine vessels for commercial and governmental customers and the fabrication of modular components of offshore drilling rigs and floating, production, storage and offloading vessels. Conrad’s Orange, Texas shipyard has been licensed by GTT to build their membrane tanks in the US. The yard is located on the Sabine River approximately 37 miles from the Gulf of Mexico on approximately 12 acres. The shipyard has six construction bays under approximately 110,000 square feet of enclosed building area with 14 overhead cranes. Please visit Conrad’s website at http://www.conradindustries.com/.
About Bristol Harbor Group
Bristol Harbor Group, Inc. is a full service naval architecture and marine engineering firm specializing in commercial vessel design and consulting. For more than 20 years, BHGI has produced many unique designs, to which more than 100 vessels have been built. These include: barges, tugs, ATB’s, passenger vessels, dredges, and yachts. Please visit BHGI’s website at http://www.bristolharborgroup.com.
TOTE is a leading transportation and logistics company, overseeing some of the most trusted companies in the US. TOTE Maritime companies Totem Ocean Trailer Express and Sea Star Line bring unmatched reliability and service to the Alaska and Puerto Rico markets. TOTE Services offers crewing and technical services to meet the needs of commercial, privately owned and U.S. Government vessels. Carlile Transportation ensures freight arrives in perfect condition to some of the world’s most challenging destinations. TOTE is part of the Saltchuk family of companies. Please visit TOTE’s website at http://www.toteinc.com.